Olympic pipline penalized

Federal regulators seek
$3.05 million penalty
against Olympic Pipe
Line

by Brier Dudley
Seattle Times staff reporter

Federal regulators announced this
morning that they are seeking a record
$3.05 million penalty against Olympic
Pipe Line in response to its deadly
rupture in Bellingham last June.

"Tragic events like this pipeline failure
must never happen again," U.S.
Transportation Secretary Rodney Slater
said.

It's the largest penalty in the history of
the agency's pipeline safety program.

"In cases like this, where a pipeline
operator fails to take appropriate actions
to ensure safety, we will penalize the
company to the fullest extent possible to
ensure full compliance with federal
safety rules," said Kelley Coyner, the
department administrator in charge of
pipeline safety.

Here are the citations against Olympic
and proposed fines:

Failing to conduct adequate damage
prevention efforts, including failing
to ensure that a representative was
present during third-party excavation
near its pipeline: $25,000.

Discovering an unsafe condition
during inspections and continuing to
operate the pipeline without
correcting the problem: $500,000.

Failing to ensure that employees on
duty at the time of the pipeline
failure were trained according to
federal regulations: $500,000.

Olympic's computer operated
irregularly, then the company
restarted the pipeline without
ensuring it could be operated safely:
$25,000.

Failing to modify its operations,
maintenance and emergency plans
when it added a new storage facility
near Mount Vernon: $500,000.

Failing to adequately test relief
valves at the new terminal:
$500,000.

Failing to respond, investigate and
correct a series of unintentional
valve shutdowns prior to the rupture:
$500,000.

Failing to maintain the required daily
operating records of discharge at
each pump station and of abnormal
events: $500,000.

Olympic was notified this morning and
had not yet reviewed "the basis" used to
levy the fine, manager Carl Gast said in a
prepared statement.

"Therefore any further comment would
be premature at this point," he said.

"I would like to point out," Gast added,
"that during the past several months,
Olympic has worked very hard to
comply with all of the safety directives
issued by the Office of Pipeline Safety,
and even now is engaged in a
comprehensive internal inspections
program of its entire 400-mile network."

Olympic, a subsidiary of some of the
world's largest oil companies - Shell,
Arco, Texaco and GATX Terminals - has
the right to contest each penalty to
reduce the amount of the proposed fines.

Last winer Olympic appealed a $120,000
fine issued by the state Department of
Ecology for a subsequent spill at its
Renton headquarters.

The appeal is still pending.

Sections of the pipeline remain shut
down as the investigation into the June
10 explosion continues.

Olympic spilled over 200,000 gallons of
gasoline into Whatcom Falls Park, where
it was ignited by two 10-year-old boys
who died of burns. An 18-year-old
fisherman was overcome by fumes and
drowned.

Members of Congress working on
pipeline issues were pleased but said the
fine doesn't lessen the need for stricter
pipeline safety laws.

"I think OPS has really taken an
important step in a very difficult case
and has done the right thing," said Sen.
Patty Murray, D-Washington.

U.S. Rep. Jay Inslee, D-Bainbridge
Island, said Coyner still needs to order
further testing of Olympic.